Small grocery retailer under threat

THE existence of small players in the grocery retail sector is under threat owing to the emergence of large shops doubling up as wholesalers and retailers, selling their products at lower margins compared to their minute competitors.

Bulawayo Traders Association president Mr Rodgers Hove said the association was concerned about the increasing number of wholesalers venturing into the retail sector stating that it created unfair competition to retailers.

"Nowadays you get a consumer buying straight from the wholesaler or sometimes the manufacturer and in this case, the retailer loses business as these consumers are buying without a licence and can even buy a single unit.

"We believe some of the wholesalers have two licences, one to operate as a wholesale and the other one as a retailer on the same premises meaning that they have the right to sell directly to the consumer," he said.

Mr Hove said the association had since engaged the Ministry of Industry and Commerce and the Consumer Council of Zimbabwe (CCZ) to address the anomaly, which threatens to diminish indigenous owned shops.

"We engaged the Ministry at provincial level and CCZ and the two said a meeting was going to be arranged between wholesalers and manufacturers, where the issue was going to be ironed out but three months down the line nothing has taken place," he said.

Mr Hove said the bigger shops have over the last few years encroached into high density suburbs, which have been largely been preserve for small retailers over the years.

"To make matters worse these big shops-cum-wholesalers have penetrated into high density suburbs and selling products at very low margins and most small shops have since closed.

"In the old days these big players weren't allowed to operate in those areas as it was a preserve for the local business community. As it is having bigger players operating in high suburbs defeats the logic of empowering indigenous businesses in line with Government ethos," said Mr Hove.